Toggle navigation
It's More Than A Textbook
Login
Managerial Economics
About The Author
Table of Contents
1. The Basic Tools: Supply And Demand
1.1 Introduction
1.2 Basic Assumptions: Competitive Markets
1.3 The Law Of Demand
1.4 The Law Of Supply
1.5 The Invisible Hand: Equilibrium
1.6 Disturbing Equilibrium With Supply And Demand Shifts
1.7 Special Considerations: Elasticity
1.8 When The Market Fails: Externalities
2. The Context: Understanding Basic Economic Indicators
2.1 Introduction
2.2 What Is GDP?
2.2.1 Measuring GDP
2.2.2 The Circular Flow
2.3 Inflation (and Deflation)
2.4 Unemployment And The Phillips Curve
3. Diagnosing A Macroeconomy And Prescribing Policy
3.1 Introduction
3.2 What Drives The Business Cycle? Aggregate Demand - Aggregate Supply Analysis
3.3 The Target: Potential GDP
3.4 Departures From The Target: Inflationary And Recessionary Gaps
3.5 The Goldilocks Economy: Too Hot, Too Cold Or Just Right
3.6 Policy Tools
3.7 Fitting Policies To Problems
4. Fiscal Policy
4.1 Introduction
4.2 How Much Fiscal Policy?
4.2.1 Government Spending And The Multiplier
4.2.2 Government Spending And Crowding Out
4.2.3 Taxes And Balanced Budgets
4.2.4 Automatic Stabilizers
4.3 What Are The Strengths And Weaknesses Of Fiscal Policy?
5. Fiscal Policy, Deficits, Debt And The Debate
5.1 Introduction
5.2 Government Deficits
5.3 Balancing The Government's Budget Across The Cycle
5.4 From Whom Do Governments Borrow?
5.5 Government Debt And Bond Markets
5.6 How Much Deficit And Debt Is Too Much?
6. Monetary Policy
6.1 Introduction
6.2 What Is Money?
6.3 What Are Central Banks?
6.4 The Money Markets And The Creation Of Money
6.5 The Policy Tools Of Central Banks
6.6 The Complexities Of Monetary Policy
6.7 What If Interest Rates Reach Zero? Unconventional Monetary Policies
6.8 What Is The "Right" Interest Rate?
6.9 What Are The Strengths And Weaknesses Of Monetary Policy?
7. The Mix Matters: Combining Fiscal And Monetary Policies
7.1 Introduction
7.2 Mixing Monetary And Fiscal Policies
8. Other Policy Options
8.1 Introduction
8.2 Exchange-rate Policy
8.3 Structural Policy
9. Exchange Rates And Currency Markets
9.1 Introduction
9.2 What Determines The Value Of A Currency?
9.2.1 Supply, Demand And Equilibrium
9.2.2 Some Key Indicators To Watch
9.2.3 Special Cases: Commodity Currencies And Reserve Currencies
9.3 How Do Changing Currency Values Affect The Economy?
9.4 How Governments Intervene In Currency Markets
9.5 The Impossible Trinity And National Currencies
9.6 Currency Values In Practice
9.6.1 Exchange Rate Regimes Around The World
9.6.2 The World´s Key Currencies
10. Trade
10.1 Introduction
10.2 Some Basic Concepts
10.3 The Theory Of Absolute Advantage
10.4 Partial Equilibrium Analysis
10.5 The Benefits Of Free Trade
10.6 The Effect Of Tariffs: Losses From Protectionism
10.7 Does Anyone Lose From Trade? Trade And Incomes
10.8 Is Free Trade Still Beneficial Even If There Are "Losers"?
10.9 The Real World Of International Trade
10.9.1 Multilateral Arrangements
10.9.2 Regional Economic Integration
11. The Balance Of Payments And The Global Growth Model
11.1 Introduction
11.2 The Underlying Principles Of The Balance Of Payments
11.3 The Components Of The Balance Of Payments: Current And Financial Accounts
11.4 The Real Causes Of Current Account Imbalances: Savers Vs Dissavers
11.4.1 Total Spending Vs Total Consumption
11.4.2 A More Formal Approach: Absorption And Trade Balances
11.4.3 Another More Formal Approach: Net Borrowing
11.4.4 Special Cases Revisited: Commodity Exporters And Reserve-currency Countries
11.4.5 The Current Account And The Business Cycle
11.5 Are Current Account Imbalances A Problem?
11.6 How Can Current-account Imbalances Be Corrected?
11.7 The Current Account And Growth Models
11.7.1 National Growth Models
11.7.2 The Global Growth Model And Its Consequences
12. Migration: Costs And Benefits
12.1 Introduction
12.2 Migration Flows In The World
12.3 How Does Migration Affect The Migrant´s Home (sending) Country?
12.4 How Does Migration Affect The Host (receiving) Country?
12.5 Why Is There So Much Opposition To Immigration?
12.5.1 The Economic Issues
13. Using The Economics Toolkit To Analyze Countries: The United States
13.1 Introduction
13.2 Early Development: No Barriers To Growth
13.3 GDP: The Problems Of An Indicator
13.4 Policy And Growth
13.5 Overconsumption, "Twin Deficits" And The Current Account
13.6 Automation, Globalization And A Dearth Of Good Jobs
13.7 A Different Model Of Advanced Capitalism
14. Growth Models And Policy Limits: The Japanese Economy
14.1 The Current Account And The Growth Model
14.1.1 The Japanese Miracle
14.1.2 Savings, Savings, Savings
14.1.3 The "Lost Decade"
14.1.4 The Key Role Of The Yen: Doubts Over Future Growth
14.2 Interpreting Indicators Of Growth
14.2.1 Nominal, Real And Per Capita GDP Growth
14.2.2 The Gini Coefficient: Why Is It Relevant?
14.3 The Labor Market
14.3.1 Unemployment And The Labor Force
14.3.2 Immigration: A Silver Bullet?
14.4 Demography And Growth
14.4.1 The Challenges Of Ageing
14.4.2 Implications For Business
14.5 Fiscal Policy And Debt Without Limits
14.5.1 The Permanent Fiscal Deficit, And Ageing
14.5.2 Does Japan Have A Public Debt Problem?
14.6 Abenomics And The Limits Of Policymaking
14.6.1 QE, Negative Interest Rates
14.6.2 Expansive Fiscal Policy
14.6.3 The Challenges Of Structural Reform
14.6.4 The Yen And The Triple Mandate
14.7 Implications For Doing Business In Japan
15. Economic Integration And Disintegration: The European Economy
15.1 Introduction
15.2 The European Integration Project: Creating The European Union
15.2.1 A Dream Of Peace And Unity
15.2.2 Pursuing The Dream: Deepening And Widening Europe
15.2.3 The Culmination: A Single Currency
15.2.4 Political Institutions And Policy Tools
15.3 A Look At The EU Economy
15.3.1 Cyclical Trends
15.3.2 The EU Vs The USA: Different Models
15.4 Crisis And Recovery With A Single Currency: Spain And The Periphery
15.4.1 Spanish Growth And Indicators
15.4.2 The Euro And The Crisis
15.4.3 Unemployment, The Labor Market And Structural Reform
15.4.4 Fiscal Transfers (or Lack Of Them)
15.4.5 The Spanish Recovery: A Successful Internal Devaluation?
15.5 The United Kingdom: In And Out Of The EU
15.5.1 Britain´s Conflicted Relationship With The EU
15.5.2 The British Economy
15.5.3 The Brexit Vote, Its Implications And Consequences
15.5.4 Immigration And Its Discontents
15.5.5 Article 50 Ways To Leave The EU
15.5.6 What Will Brexit Mean For The Uk?
15.6 The Future Of The EU
16. Growth Models, Institutions And The Future Superpower: India And China
16.1 Introduction
16.2 A (very) Brief History
16.3 Embarking On Development
16.3.1 What Is Development?
16.3.2 India And The Limits Of Import-substitution Industrialization
16.3.3 Revolutionizing China
16.4 Comparing Indian And Chinese Data
16.4.1 Strategies For Growth
16.4.2 Two Current Accounts
16.4.3 The Shifting Foundations Of Growth
16.4.4 The Risks Of Export-oriented Industrialization
16.4.5 From Dependence On Foreign Demand To Private Debt Overhang
16.4.6 Fiscal And Debt Issues
16.5 Demography
16.6 Institutions
16.6.1 (in)equality
16.6.2 Doing Business
16.6.3 Quality Of Governance, And Questions About Democracy
17. Conclusion: Making Sense Of A "Blooming, Buzzing Confusion"
17.1 Introduction
17.2 Coming To Some Conclusions...
17.3 ...and Asking More Questions
Table Of Contents
1. The Basic Tools: Supply And Demand
Introduction
Basic Assumptions: Competitive Markets
The Law Of Demand
The Law Of Supply
The Invisible Hand: Equilibrium
Disturbing Equilibrium With Supply And Demand Shifts
Special Considerations: Elasticity
When The Market Fails: Externalities
2. The Context: Understanding Basic Economic Indicators
Introduction
What Is GDP?
Measuring GDP
The Circular Flow
Inflation (and Deflation)
Unemployment And The Phillips Curve
3. Diagnosing A Macroeconomy And Prescribing Policy
Introduction
What Drives The Business Cycle? Aggregate Demand - Aggregate Supply Analysis
The Target: Potential GDP
Departures From The Target: Inflationary And Recessionary Gaps
The Goldilocks Economy: Too Hot, Too Cold Or Just Right
Policy Tools
Fitting Policies To Problems
4. Fiscal Policy
Introduction
How Much Fiscal Policy?
Government Spending And The Multiplier
Government Spending And Crowding Out
Taxes And Balanced Budgets
Automatic Stabilizers
What Are The Strengths And Weaknesses Of Fiscal Policy?
5. Fiscal Policy, Deficits, Debt And The Debate
Introduction
Government Deficits
Balancing The Government's Budget Across The Cycle
From Whom Do Governments Borrow?
Government Debt And Bond Markets
How Much Deficit And Debt Is Too Much?
6. Monetary Policy
Introduction
What Is Money?
What Are Central Banks?
The Money Markets And The Creation Of Money
The Policy Tools Of Central Banks
The Complexities Of Monetary Policy
What If Interest Rates Reach Zero? Unconventional Monetary Policies
What Is The "Right" Interest Rate?
What Are The Strengths And Weaknesses Of Monetary Policy?
7. The Mix Matters: Combining Fiscal And Monetary Policies
Introduction
Mixing Monetary And Fiscal Policies
8. Other Policy Options
Introduction
Exchange-rate Policy
Structural Policy
9. Exchange Rates And Currency Markets
Introduction
What Determines The Value Of A Currency?
Supply, Demand And Equilibrium
Some Key Indicators To Watch
Special Cases: Commodity Currencies And Reserve Currencies
How Do Changing Currency Values Affect The Economy?
How Governments Intervene In Currency Markets
The Impossible Trinity And National Currencies
Currency Values In Practice
Exchange Rate Regimes Around The World
The World´s Key Currencies
10. Trade
Introduction
Some Basic Concepts
The Theory Of Absolute Advantage
Partial Equilibrium Analysis
The Benefits Of Free Trade
The Effect Of Tariffs: Losses From Protectionism
Does Anyone Lose From Trade? Trade And Incomes
Is Free Trade Still Beneficial Even If There Are "Losers"?
The Real World Of International Trade
Multilateral Arrangements
Regional Economic Integration
11. The Balance Of Payments And The Global Growth Model
Introduction
The Underlying Principles Of The Balance Of Payments
The Components Of The Balance Of Payments: Current And Financial Accounts
The Real Causes Of Current Account Imbalances: Savers Vs Dissavers
Total Spending Vs Total Consumption
A More Formal Approach: Absorption And Trade Balances
Another More Formal Approach: Net Borrowing
Special Cases Revisited: Commodity Exporters And Reserve-currency Countries
The Current Account And The Business Cycle
Are Current Account Imbalances A Problem?
How Can Current-account Imbalances Be Corrected?
The Current Account And Growth Models
National Growth Models
The Global Growth Model And Its Consequences
12. Migration: Costs And Benefits
Introduction
Migration Flows In The World
How Does Migration Affect The Migrant´s Home (sending) Country?
How Does Migration Affect The Host (receiving) Country?
Why Is There So Much Opposition To Immigration?
The Economic Issues
13. Using The Economics Toolkit To Analyze Countries: The United States
Introduction
Early Development: No Barriers To Growth
GDP: The Problems Of An Indicator
Policy And Growth
Overconsumption, "Twin Deficits" And The Current Account
Automation, Globalization And A Dearth Of Good Jobs
A Different Model Of Advanced Capitalism
14. Growth Models And Policy Limits: The Japanese Economy
The Current Account And The Growth Model
The Japanese Miracle
Savings, Savings, Savings
The "Lost Decade"
The Key Role Of The Yen: Doubts Over Future Growth
Interpreting Indicators Of Growth
Nominal, Real And Per Capita GDP Growth
The Gini Coefficient: Why Is It Relevant?
The Labor Market
Unemployment And The Labor Force
Immigration: A Silver Bullet?
Demography And Growth
The Challenges Of Ageing
Implications For Business
Fiscal Policy And Debt Without Limits
The Permanent Fiscal Deficit, And Ageing
Does Japan Have A Public Debt Problem?
Abenomics And The Limits Of Policymaking
QE, Negative Interest Rates
Expansive Fiscal Policy
The Challenges Of Structural Reform
The Yen And The Triple Mandate
Implications For Doing Business In Japan
15. Economic Integration And Disintegration: The European Economy
Introduction
The European Integration Project: Creating The European Union
A Dream Of Peace And Unity
Pursuing The Dream: Deepening And Widening Europe
The Culmination: A Single Currency
Political Institutions And Policy Tools
A Look At The EU Economy
Cyclical Trends
The EU Vs The USA: Different Models
Crisis And Recovery With A Single Currency: Spain And The Periphery
Spanish Growth And Indicators
The Euro And The Crisis
Unemployment, The Labor Market And Structural Reform
Fiscal Transfers (or Lack Of Them)
The Spanish Recovery: A Successful Internal Devaluation?
The United Kingdom: In And Out Of The EU
Britain´s Conflicted Relationship With The EU
The British Economy
The Brexit Vote, Its Implications And Consequences
Immigration And Its Discontents
Article 50 Ways To Leave The EU
What Will Brexit Mean For The Uk?
The Future Of The EU
16. Growth Models, Institutions And The Future Superpower: India And China
Introduction
A (very) Brief History
Embarking On Development
What Is Development?
India And The Limits Of Import-substitution Industrialization
Revolutionizing China
Comparing Indian And Chinese Data
Strategies For Growth
Two Current Accounts
The Shifting Foundations Of Growth
The Risks Of Export-oriented Industrialization
From Dependence On Foreign Demand To Private Debt Overhang
Fiscal And Debt Issues
Demography
Institutions
(in)equality
Doing Business
Quality Of Governance, And Questions About Democracy
17. Conclusion: Making Sense Of A "Blooming, Buzzing Confusion"
Introduction
Coming To Some Conclusions...
...and Asking More Questions
No Access
Please log in or purchase access.